Seven seeks $1bn over C7 demise

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THE closure of the C7 pay TV business in 2002 devalued its
parent broadcaster by up to $662 million, the Federal Court has
heard.

Seven Network said this represented the revenue and growth
opportunities it lost because, without C7, it could not pursue an
"integrated media company strategy".

Seven's barrister, John Sheahan, SC, said his client also wanted
compensation for C7's lost opportunities in pay TV, which an
economist had put at $396 million.

The combined damages of $1.058 billion are being sought from
nine groups of Seven's rivals and former business partners,
including News Corp, Telstra, Optus and Publishing and Broadcasting
Ltd.

Seven's key claim is that News organised a collusion to destroy
C7 so that its half-owned Fox Sports would achieve a monopoly in
pay TV programming and its 25 per cent-owned Foxtel would entrench
its dominance of retail pay TV.

Earlier yesterday, Seven's lead barrister, Jonathan Sumption,
QC, finished his opening address with the claim that "the story as
a whole" of C7's demise suggested "a basic problem of business
mentality".